Emergent Capital, Inc. Announces First Quarter 2016 Results

BOCA RATON, Fla., May 9, 2016 /PRNewswire/ -- Emergent Capital, Inc. (NYSE: EMG) ("Emergent" or the "Company"), today announced its financial results for the three month period ended March 31, 2016.

Three Months Ended March 31, 2016Total income from continuing operations was $8.5 million for the three month period ended March 31, 2016 compared to income from continuing operations of $13.0 million for the same period in 2015.   This decrease was primarily due to a $3.4 million reduction in realized gains from policy maturities.

The following table provides a summary of the components of income from the Company's life settlements.

Total expenses from continuing operations were $15.9 million for the three month period ended March 31, 2016 compared to $19.1 million for the same period in 2015. The decrease was primarily related to a reduction of $1.9 million in legal expenses and $680,000 in professional fees.  The decrease in legal fees was primarily related to the USAO Investigation that concluded on December 31, 2015.

The Company reported a net loss from continuing operations of $7.4 million, or $(0.27) per diluted share for the three month period ended March 31, 2016, compared to a net loss of $4.2 million, or $(0.19) per diluted share for the same period in 2015. The net loss for the three month period ended March 31, 2015 includes an income tax benefit of approximately $1.9 million.  There was no tax benefit included in the net loss for the three month period ended March 31, 2016.

Life Settlements Portfolio HighlightsOn March 31, 2016, the estimated fair value of the Company's 626 life insurance policies was $475.4 million compared to $461.9 million for 632 life insurance policies on December 31, 2015. The weighted average discount rate was 16.92% on March 31, 2016 compared to 17.02% on December 31, 2015. The aggregate face value of the Company's portfolio of life insurance policies was approximately $3.0 billion on March 31, 2016. During the quarter, six life insurance policies that served as collateral under the revolving credit facilities matured totaling $13.0 million.

Antony Mitchell, Chief Executive Officer of Emergent, commented: "We remain keenly focused on reducing our cash expenses going forward. In the first quarter we benefited from lower operating expenses, excluding interest and other related financing costs, which resulted in a $2.9 million, or 34%, reduction year over year." Mr. Mitchell continued, "Looking ahead, we expect cash costs to decline further while we look for opportunities to maximize value from our maturing portfolio."

As of March 31, 2016 the Company had cash and cash equivalents of $47.9 million and a Book Value per share of $7.74.

Conference CallThe Company will be hosting a conference call today at 4:30pm ET. To join the call, please dial toll free (855) 656-0929, or from outside the U.S. (412) 317-6021. The conference call will also be broadcast live through a link on the Investor Relations section of the Company's website at www.emergentcapital.com. Please visit the website at least 10 minutes prior to the call to register, download and install any necessary audio software.

About Emergent Capital, Inc.Emergent Capital (NYSE: EMG) is a specialty finance company that invests in life settlements. More information about Emergent can be found at www.emergentcapital.com.

Safe Harbor StatementThis press release may contain certain "forward-looking statements" relating to the business of Emergent Capital, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, and involve known and unknown risks and uncertainties. Although Emergent believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Emergent does not assume a duty to update these forward-looking statements.

-SELECTED FINANCIAL TABLES FOLLOW-

 

 

 

 

 

 

 

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SOURCE Emergent Capital, Inc.